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China’s renewed crackdown on cryptocurrencies in late 2025 has reignited debate over the future of digital assets. Yet instead of undermining Bitcoin, the latest warnings from the People’s Bank of China (PBOC) may strengthen Bitcoin’s appeal as a neutral hedge in an era of shifting monetary power. As Beijing accelerates its rollout of the digital yuan (e-CNY), corporations worldwide are expanding their Bitcoin treasuries—turning regulatory pressure into a bullish driver for a multipolar financial system.
PBOC’s Hard Line: Familiar but Intensified
On November 28–29, 2025, the PBOC issued one of its most forceful statements since the 2021 ban. Regulators reiterated that all virtual assets—including major stablecoins like USDT and USDC—hold “no legal status” in China and cannot function as currency. Authorities pledged further crackdowns targeting speculative trading, money laundering, and cross-border transfers. Stablecoins were identified as potential threats to China’s monetary sovereignty.
Despite years of enforcement, underground activity persists. Estimates suggest China still contributes around 14% of global Bitcoin hashrate through covert mining, while OTC and peer-to-peer trading continues to survive in fragmented forms. Beijing’s stance remains clear: crypto is illegal financial activity, but the deeper issue is safeguarding the yuan from non-state digital competitors.
Meanwhile, Hong Kong has moved in the opposite direction—permitting regulated stablecoins, tokenization pilots, and institutional crypto services. This regulatory divergence underscores Beijing’s zero-tolerance approach to private digital assets.
e-CNY and the Push for De-Dollarization
China’s crackdown is inseparable from its long-term ambition to elevate the yuan globally. The digital yuan now exceeds 225 million wallets, with widespread use across retail, public services, and transport. In September 2025, Shanghai launched an international e-CNY operations center to expand cross-border adoption, particularly across Belt and Road countries.
PBOC Governor Pan Gongsheng has described the e-CNY as a pillar of a “multi-polar currency system” designed to reduce reliance on the U.S. dollar. This narrative matches broader de-dollarization trends: reserve diversification is accelerating, while demand for gold and Bitcoin continues to rise as alternative stores of value. Ironically, by tightening restrictions on private crypto, Beijing is both accelerating the e-CNY’s adoption and highlighting Bitcoin’s utility as a censorship-resistant asset outside state control.
Corporate Bitcoin Boom
While China cracks down, corporations elsewhere are increasing their Bitcoin exposure at unprecedented rates. Depending on the tracker, public companies now hold between 800,000 and 1,000,000 BTC, equivalent to roughly 4–5% of total supply.
MicroStrategy remains the largest corporate holder, with over 600,000 BTC by late 2025. Other major players include:
Marathon Digital (MARA): significant reserves accumulated through mining
Riot Platforms: more than 19,000 BTC
Block (Square): long-term strategic holder
Metaplanet: over 20,000 BTC
Semler Scientific: around 4,600–5,000 BTC
In total, over 160 public firms now hold Bitcoin, with corporate treasuries valued between $90–150 billion. Many analysts view 2025 as the year Bitcoin became a mainstream corporate reserve asset.
Crackdown as a Catalyst
The paradox is clear: China’s restrictions highlight the risks of monetary centralization, pushing global investors toward Bitcoin as a neutral asset immune to state control. As BRICS economies explore alternatives to the dollar, Bitcoin is increasingly perceived as a supranational hedge.
Inside China, interest remains strong despite restrictions, with users accessing offshore platforms and Hong Kong’s ecosystem providing indirect liquidity. Regulatory shocks continue to cause short-term volatility, but historically they have strengthened Bitcoin’s long-term narrative.
Risks and Outlook
Challenges remain. MicroStrategy’s valuation dip in December raised questions about future flexibility, though the company ruled out near-term selling. Global macro pressures—from currency volatility to liquidation waves—may test institutional balance sheets.
Yet momentum remains positive. With U.S. states experimenting with Bitcoin-based tax frameworks and more companies adopting BTC as treasury strategy, institutional integration is deepening. By 2026, continued de-dollarization may push more corporations and even sovereign entities toward Bitcoin.
